Rio Tinto: Profitable Growth Enables Group To Invest For Future

(RTTNews) - Rio Tinto (RTPPF.PK, RIO.L, RIO, RTNTF.PK) said performance at Pilbara iron ore and Oyu Tolgoi copper operations shows the company's path towards becoming best operator. For 2023, the Group's Copper Equivalent production is expected to grow 4%. This included a 5 million tonne uplift from implementing the Safe Production System at the Pilbara iron ore business, where a further 5 million tonne uplift is targeted for 2024.

Looking forward, Rio Tinto targets to achieve and sustain mid-term system annual capacity of 345 to 360 million tonnes from its Pilbara iron ore business. The Group noted that production is ramping up from Oyu Tolgoi in Mongolia, which is set to deliver 500 kt of copper per year on average for the period 2028-2036. The Group also announced estimate of its $6.2 billion share of capital investment to develop Simandou.

Rio Tinto's share of capital investment is expected to be around $10 billion per year from 2024 to 2026, including up to $3 billion per year of growth investment. The largest investment over the next three years is anticipated to be equity share of the Simandou project. The remainder will be focussed on other copper and lithium projects.

Rio Tinto has updated total capital guidance on decarbonisation to $5 to 6 billion for the period to 2030, from previous guidance of approximately $7.5 billion, including around $1.5 billion from 2024 to 2026 and weighted to the latter part of the period.

"Our purpose and long-term strategy make more sense than ever, as we ensure Rio Tinto remains a strong investment proposition. Profitable growth enables us to invest for the future while also paying attractive returns," Rio Tinto Chief Executive Jakob Stausholm said.